PROPERTY INVESTOR ALERT - Section 23 - type Relief - Important budget changes in Ireland
PROPERTY INVESTOR ALERT - Section 23 - type Relief - Important budget changes in Ireland
From 1 January 2011, relief will be restricted to income generated by the Section 23 property itself (currently such income can be set against all rental income).
At the end of 10 year holding period, any unused relief will be lost. If property is sold within this period, the new owner will not get Section 23 relief and the seller continues to be subject to a clawback of relief already given.
For Section 23 properties yet to be sold, for which the relief has yet to be claimed, the 10-year qualifying period will start on 30 June 2011 regardless of the date of the first qualifying lease. Therefore, in such cases no Section 23 relief will be available after 30 June 2021. Residential owner-occupier relief is unaffected by these changes.
From 1 January 2011, relief will be restricted to income generated by the Section 23 property itself (currently such income can be set against all rental income).
At the end of 10 year holding period, any unused relief will be lost. If property is sold within this period, the new owner will not get Section 23 relief and the seller continues to be subject to a clawback of relief already given.
For Section 23 properties yet to be sold, for which the relief has yet to be claimed, the 10-year qualifying period will start on 30 June 2011 regardless of the date of the first qualifying lease. Therefore, in such cases no Section 23 relief will be available after 30 June 2021. Residential owner-occupier relief is unaffected by these changes.
